Iran and India have signed an agreement in St. Petersbuig on Tuesday to create an international north-south transport corridor, Iran Daily reported Thursday.

The agreement was signed within the framework of the 2nd International Eurasian Conference on Transport attended by Mikhail Kasyanov Russian premier, who was quoted by the daily as saying that the north-south corridor is very important for Russia.

"Now India, Iran and Iraq can transport goods three times faster than sending it across the Suez Canal," Kasyanov said. "The realization of the national transport potential is one of the priorities of the Russian government."

The Prime Minister, according to the paper, added that until recently Russia had no possibility to take advantage of its geographic location. He also underlined the importance of the west-east corridor for Russia.

"Active use of both corridors by Russia will signify that Russia is not a terminal point in both directions, but has a huge transit potential," Kasyanov said. "Over the past year the volume of transit across Russia has grown by 4 percent – Albawaba.com